Eastspring Investments: Responsible Investment Report 2022
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Developing proprietary tools to support investment decisions and client reporting
ESG Controversies Active Monitoring System a built-in portfolio controversy monitoring feature Eastspring Singapore has fully rolled out an ESG Controversies Active Monitoring System to enhance active ESG ownership of holdings in our listed portfolios in the equity and fixed income space. This system is integrated with our portfolio management system, allowing us to monitor holdings that cross a material ESG controversy threshold in a timely manner, throughout the investment period. Holdings that cross this threshold are flagged to the ESG Specialists, Portfolio Managers, and Credit Analyst teams for further analysis for impact on investment thesis or development of an ESG engagement plan over the investment lifetime. The materiality threshold is designed to detect ESG controversies that may have direct business impact. Implementation of this system has resulted in the following outcomes:
ESGenie an in-house desktop tool for easy access to ESG factors
We utilise internal and external resources to assist in the analysis of material ESG issues which are incorporated into decision making and engagement activities. As part of the ongoing evolution of our approach, we continue to assess external sources of information to ensure our approach has the appropriate tools to aid in applying our best judgment. Investment teams may also consider other research resources including, but not limited to, a company’s own data, other sell side research, public databases, and proprietary tools. In addition, LBUs may make use of market-specific data providers that might provide a more comprehensive coverage of local data. The following tools have been developed for Eastspring Singapore. In the immediate future, we are looking to expand coverage and accessibility from Eastspring Singapore to all Eastspring LBUs.
We combine a wide-range of ESG data into a singular desktop tool to facilitate the integration of material ESG factors into our research and decision-making processes. First conceptualised in 2020, it was enhanced for our equity teams in 2021, and further enhanced for our fixed income teams in 2022. The Fixed Income Proprietary Matrix, which is Eastspring’s assessment process that considers a range of ESG exposure and management metrics for corporate bond issuers, has been seamlessly built into ESGenie as an enhancement.
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